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Immigration and Poverty: Findings from Cyprus

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  • Christos Koutsampelas

Abstract

In this paper we employ the 2009 Family Expenditure Survey conducted by the Statistical Service of Cyprus in order to measure the poverty risk among immigrants in Cyprus. Results show that immigrants face a higher risk and depth of poverty than the native population. Large intra-group variation exists. Poverty risk is considerably higher for non-Europeans and, within the group of Europeans, migrants from Western Europe are better off than those from Eastern Europe. Econometric analysis shows that the worst position of immigrants cannot be explained solely by socioeconomic characteristics, suggesting that this is the outcome of discriminatory practices in the income-generating process. Moreover, we found that the results of the analysis are sensitive to the definition of income. In particular, the inclusion of imputed rent in the notion of income increases the measured poverty gap between natives and immigrants even further, due to the lower incidence of homeownership among immigrants.

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File URL: http://papers.econ.ucy.ac.cy/RePEc/papers/13-12.pdf
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Bibliographic Info

Paper provided by University of Cyprus Department of Economics in its series University of Cyprus Working Papers in Economics with number 13-2012.

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Length: 36 pages
Date of creation: Aug 2012
Date of revision:
Handle: RePEc:ucy:cypeua:13-2012

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Web page: http://www.econ.ucy.ac.cy

Related research

Keywords: Poverty; Immigration; Cyprus; Imputed rents;

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  1. Frick, Joachim R. & Grabka, Markus M., 2003. "Imputed Rent and Income Inequality: A Decomposition Analysis for Great Britain, West Germany and the U.S," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 513-537.
  2. Louis N. Christofides & Sofronis Clerides & Costas Hadjiyiannis & Michel S. Michael, 2007. "The Impact of Foreign Workers on the Labour Market of Cyprus," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 1(2), pages 37-49, December.
  3. Blume Jensen, Kræn & Gustafsson, Björn Anders & Pedersen, Peder J. & Verner, Mette, 2005. "At the Lower End of the Table: Determinants of Poverty among Immigrants to Denmark and Sweden," IZA Discussion Papers 1551, Institute for the Study of Labor (IZA).
  4. Panos Tsakloglou & Christos Koutsampelas, 2012. "The distribution of full income in Greece," DEOS Working Papers 1207, Athens University of Economics and Business.
  5. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  6. Jorgen Hansen & Roger Wahlberg, 2009. "Poverty and its persistence: a comparison of natives and immigrants in Sweden," Review of Economics of the Household, Springer, vol. 7(2), pages 105-132, June.
  7. Frick, Joachim R. & Grabka, Markus M. & Smeeding, Timothy M. & Tsakloglou, Panos, 2010. "Distributional Effects of Imputed Rents in Five European Countries," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 167-179.
  8. Taryn Ann Galloway & Rolf Aaberge, 2005. "Assimilation effects on poverty among immigrants in Norway," Journal of Population Economics, Springer, vol. 18(4), pages 691-718, November.
  9. Rafael Muñoz de Bustillo & José-Ignacio Antón, 2011. "From Rags to Riches? Immigration and Poverty in Spain," Population Research and Policy Review, Springer, vol. 30(5), pages 661-676, October.
  10. Louis N. Christofides & Sofronis Clerides & Costas Hadjiyiannis & Michael S. Michael & Marios Stephanides, 2009. "The Impact of Immigration on Unemployment, Labour Force Participation and Part-time Employment in Cyprus," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 3(1), pages 51-84, June.
  11. José-Ignacio Antón & Rafael Muñoz de Bustillo & Miguel Carrera, 2010. "From guests to hosts: immigrant-native wage differentials in Spain," International Journal of Manpower, Emerald Group Publishing, vol. 31(6), pages 645-659, September.
  12. Yates, Judith, 1994. "Imputed Rent and Income Distribution," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 40(1), pages 43-66, March.
  13. Drydakis, Nick, 2012. "The Effect of Ethnic Identity on the Employment of Immigrants," IZA Discussion Papers 6314, Institute for the Study of Labor (IZA).
  14. Blume, Kraen & Gustafsson, Bjorn & Pedersen, Peder J. & Verner, Mette, 2003. "A Tale of Two Countries: Poverty among Immigrants in Denmark and Sweden since 1984," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
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